‘World Biofuel Market’ to be $257 Bn by 2031: InsightAce Analytic
InsightAce Analytic Pvt. Ltd. has unveiled its latest market report focusing on the “Global Biofuel Market.” According to InsightAce findings, the market reached a value of US$ 155.52 billion in 2022, projected to ascend to US$ 257.19 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 5.85% during the forecast period from 2024 to 2031.
Biofuels encompass a range of sources, such as ethanol from sugar cane or corn, charcoal, woodchips, and biogas derived from the anaerobic decomposition of waste materials. Their versatility extends to various modes of transportation, including cars, trucks, ships, and aircraft.
Among liquid biofuels, ethanol and biodiesel currently dominate the market. InsightAce mentions that the production and consumption of biofuels are poised for unprecedented global expansion, driven by factors like escalating oil prices, national security imperatives, the imperative to bolster agricultural incomes, and advancements in technology.
InsightAce report also says that numerous nations have implemented robust incentives to promote the production and utilization of biofuels, aiming to mitigate environmental impacts while enhancing energy security. This strategy not only broadens the spectrum of fuel choices for transportation but also fosters the development of cleaner, sustainable alternatives to petroleum.
Biofuels hold promise for significantly reducing emissions, particularly with the emergence of innovative biomass technologies utilizing agricultural waste and cellulosic crops. Under favorable conditions, these plants can contribute to mitigating climate change by sequestering CO2 from the atmosphere and storing it underground.
For countries heavily reliant on the liquid fuel sector, biofuels offer a pathway to diversify their energy supply and reduce vulnerability to supply disruptions, instilling a sense of optimism for a more resilient and sustainable future.
Growth Drivers
InsightAce said that the surge in demand for biofuels stems from their usage in vehicles, promising significant reductions in CO2 emissions. Transitioning to this alternative energy source curtails fossil fuel emissions, with captured CO2 potentially sequestered underground. Furthermore, since plants and trees used as biofuel feedstocks absorb CO2 during growth, emissions are further mitigated. Consequently, the necessity for eco-friendly fuels is poised to propel the liquid biofuels industry forward.
Forecasts suggest that the North American biofuel market will dominate in revenue, poised for rapid growth due to abundant feedstock resources available for conversion.
